Testimonial from North Harbor Diesel & Yacht Service Inc. - KMI Sea-lift - #1

February 7, 2007

Krause Manufacturing, Inc. Attn: Darryl Krause 6059 Guide Meridian Rd. Bellingham, WA 98226

Re: KMI Sea-Lift

Darryl,

The location of my repair facilities are so far from the water I was constantly at the mercy of 2 local yards who owned/leased haulout facilities because I had no leasehold on waterfront property to employ my own TraveLift. In addition, these yards were able to monopolize haulout & delivery rates in our area. Having an industrial launch ramp nearby enabled me to use crude trailer/forklift combinations for some boats but I needed a permanent, reliable solution.

Necessity is the mother of invention and that statement has proven itself with the KMI Sea-Lift. When your father, Herb Krause, and I put our heads together on this project almost 7 years ago, I knew it would be the beginning of a revolution for boat yard operations. Our first Sea-Lift arrived in the fall of 2000, immediately we tightened up our yard, creating 11 more yard spaces (from 22) and gaining 5 spots in our 14000 sq. ft. shop, including a 60'x 20' paint booth we were unable to utilize before!

Due to the success of the Sea-Lift, I have been able to play a role in establishing 3 new boat yards in our area. Our customers rave about our efficient operation, and our 'dry marinas' are full year round. I have also been privileged to contribute to the continuing evolution of the machine having just purchased a 3^rd generation 45-ton remote model which is my 4^th Sea-Lift! We now have 2 in operation maintaining over 5 acres of boat yards year-round (the other 2 were sold to local yards Granville Marine & BananaBelt Boats.) We can launch fifteen 30-60' yachts in an 8 hour day and that record will double this summer with the purchase of our remote lift. Truly, this machine has made the impossible possible in this industry. So, on behalf of North Harbor Diesel & Yacht Service, North Harbor Shoreside Marina & North Harbor Yacht Sales, I'd like to thank Krause Manufacturing and send out a tribute to Herb for his creative genius, without it we wouldn't be where we are today.

Thank you,

Howard D. Bean Owner

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